The crude oil (CL) futures market is currently setting up for a potential downside move.
After hitting resistance at the top of its hourly down channel, the market had a bearish reaction and started moving lower again.
It has also made a counter trend line break bearish, which gives us the confirmation we have been looking for…
So, let’s take a look at the chart and see how things could play out from here!
The Crude Oil Trade Setup
Here’s how the chart is setting up for the crude oil futures market (CL)…
The CL one hour time frame is in a down channel, with the market near the top of the channel.
As long as the market does not close above the top of the channel, it is expected the market will sell off towards the bottom of the channel.
Entry: Counter trend line break bearish below the top of the channel.
Stop: In the buy zone above the high before the entry.
Limit: 87.84
As long as the market stays below the top of the channel, it will be a good idea to turn to the five minute time frame and to look for Destination Trader short / Tunnel Trader short / Chandelier Trader short ideas towards the one hour price target.
The Bottom Line
There are multiple ways to trade the futures, stock and other markets. We can trade the indexes, both up and down, as well as individual stocks.
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The post Where is Crude Oil Headed This Week? appeared first on Josh Daily Direction.
